Reply #10: An effect on wages one way is no guarantee that it will automatically work the other way [View All]

[Hello_Kitty]

Union members who negotiated for good health plans in lieu of wages are not necessarily going to be able to get increased wages when the excise tax goes into effect and health plans are pared back. For example, most of the unionized workers in my state, Arizona, work directly for the government or have substantial gov't contracts. Our state is dead broke. We have a higher per-capita debt than CA. And we are constitutionally mandated to have a balanced budget. Therefore, any savings created by this excise tax on these gov't workers will most assuredly NOT be put back in wages. That's just one area that throws a monkey wrench in your projection.